1926 Santa Ynez is a 6-unit Spanish-style property located two blocks west of Echo Park Lake and two blocks south of Sunset Blvd. This largely-renovated turnkey property is located within walking distance of a revitalized urban oasis serving as a neighborhood hub, and a wide array of popular retailers, cafes, and restaurants along Sunset Blvd. Four of these units are extensively renovated and blend Spanish charm with luxurious amenities that appeal to high-income young professionals and families.
About The Property
Stats
Price $2,330,000
Year Built 1927
City Echo Park
Current CAP 5.51%
Price p/ Sq. ft. $504
Price P/ Unit $388,333
Background
1926 Santa Ynez was a turnkey Spanish-style property in the heart of Echo Park. The property featured extensively renovated units with modern amenities and high-end finishes that appealed to high-income young professionals. With most units renovated and interest rates rising, ownership felt it was time to move on to the next project. The property’s minority partner had a successful experience with KST in the past (929 Idaho), and referred us to his general partner to get the job done.
Challenge
Challenges emerged, particularly concerning the four renovated yet VACANT units at the start of the listing. Many potential investors had doubts regarding the achievability of projected rents. In addition, we offered the property at a 5.33% CAP, while interest rates were at 6.5%. This dramatically shrunk the buyer pool because investors could not justify putting fresh equity and new debt into the deal. We knew we had to find an exchange buyer looking for “mailbox money” without management headaches.
Result
With few exchange buyers in the market, we increased the property’s visibility. In addition to traditional platforms, digital ads generated 50,000 views and 3,000 property website visits. This heightened exposure, paved the way for multiple offers, and identified an outside agent representing an exchange buyer. Having recently relocated to LA, the client sold an out-of-state property and sought an income property in close proximity. Ultimately, escrow closed 90 days after we received the listing at 95% of the listed price.
